A trader reacts as he looks at financial data on computer screens. (Photographer: Chris Ratcliffe/Bloomberg)

Weekly Wrap: Sensex, Nifty Clock Worst Week In 16 On Domestic Concerns 

Indian equity benchmarks halted their two-week rally and clocked their worst five-day fall in nearly four months as concerns in the domestic markets took over global issues.

The S&P BSE Sensex fell 2.02 percent to 35,808.95 and the NSE Nifty 50 closed at 10,724.40 after falling 2 percent. For both the gauges, it was the worst performance since the week ended Oct. 28.

Weekly Wrap: Sensex, Nifty Clock Worst Week In 16 On Domestic Concerns 

There has been a decoupling of the Indian markets recently from global peers and the domestic headwinds are putting more pressure than any international developments, according to TRACOM Stock Brokers’ Director Parthiv Shah. “We believe that a lot of money is waiting on sidelines for the major event of Lok Sabha elections to be over after which we might see a change in sentiments,” Shah told BloombergQuint. “Any change in the management commentary post the fourth quarter might also help.”

Debabrata Bhattacharjee, head of research at CapitalAim, said in a note, “In a short view, Nifty has to sustain at around 107,00 level but the attack on CRPF created new sentiment towards downside in Nifty futures on the concern of the government’s hawkish stance.” Nifty 50 has support at around 10,600 to 10,500, according to Bhattacharjee, but if that range breaks it’s likely that the index will hit 10,200 in the short term.

Ten out of 11 sectoral gauges compiled by National Stock Exchange fell, led by the NSE Nifty PSU Bank Index’s nearly 7 percent decline. The NSE Nifty Media Index was the only sectoral gainer, up 4.3 percent.

The broader market represented by the NSE Nifty 500 Index fell 2.3 percent. The decline in the 500-share gauge was led by the Indo Count Industries Ltd. and Gujarat Narmada Valley Fertilizers Ltd.

Rupee: Second Best Asian Currency This Week

The Indian rupee strengthened for the first time in three weeks against the U.S. dollar and ended at 71.22. The local legal tender was the second-best performer among Asian peers.

Big Talking Points Of This Week

  • Pulwama Attack: Death toll rises to 40, PM Modi warns Pakistan.
  • CPI inflation falls further to 2% on falling food prices.
  • India’s industrial output grows 2.4% in December.
  • RBI found no divergence in provisioning, asset classification, says Yes Bank.
  • Bankruptcy Expert Edward Altman says it’s too easy to get a high credit rating in India.
  • Allianz’s MacDonald says ‘regulatory surprises’ are making global investors cautious on India.
  • Next six months best time to invest in mid caps, Carnelian Capital says.
  • ICICI loans to Videocon Group: Poor lending decisions or quid pro quo?
  • Sharp fall in crude oil prices costs fuel marketers over Rs 17,500 crore.
  • Total revenue of top five IT firms grows at its fastest pace in 18 quarters.
  • The mutual funds that saw debt outflows after IL&FS crisis.
  • RBI penalises five banks for not monitoring end use of funds.
  • R Venkataramanan to leave Tata Trusts.
  • City gas distribution auction: It’s Adani versus the rest.
  • Reliance Power asks SEBI to immediately ban Edelweiss Group from capital markets.

Don’t forget:

Key Events To Watch Next Week

  • Feb. 21: FOMC meeting minutes
  • Feb. 21: Jet Airways external general meeting